SHANGHAI, Jun. 3 (SMM) –LME aluminum climbed to USD 1,768/mt after opening at USD 1,758.5/mt on Tuesday. But the light metal fell back to USD 1,734/mt later due to strong resistance at moving averages, and finally ended at USD 1,744/mt. Trading volumes were up 389 lots to 14,817 lots, and positions were up 1,371 to 821,480. The US dollar softened on weak economic data, while the euro strengthened as Greece debt issue eased somewhat. But a weaker greenback did not offer rising impetus to LME aluminum.
On Tuesday night, SHFE 1508 aluminum contract rose to RMB 13,190/mt after opening at RMB 13,180/mt, but then fell to RMB 13,135/mt before ending the night session at RMB 13,160/mt. Trading volumes totaled 10,254 lots, and positions were up 1,492 to 134,250.
SHFE 1508 aluminum contract will continue to be capped below the 5-day moving average, and move between RMB 13,140-13,190/mt on Wednesday. In China’s spot market, spot discounts of RMB 80-120/mt are expected over SHFE 1506 aluminum contract.